Proposed LG&E gas tax moves forward by slim margin

Only people who live in the old City of Louisville, known as the Urban Services District and unincorporated parts of Jefferson County would pay the fee. Customers who live in Louisville's suburban cities wouldn't see an increase.

Council President Jim King

Democrat Brent Ackerson

LOUISVILLE, KY (WAVE) – Metro Council members moved a step closer to imposing on natural gas customers a $20 fee that Greater Louisville Inc. opposes.

The budget committee approved the measure on a 4-3 vote Thursday. The proposed ordinance would allow Mayor Greg Fischer's office to impose up to a 3 percent fee on Louisville Gas and Electric's gas customers.

Three Republicans voiced opposition to the plan, and one held up a stack of complaints from community members about the fee. Democrat Brent Ackerson joined them and said he, too, had concerns.

"At the end of the day, if this passes, my constituents will pay more money," said Ackerson, who represents portions of West Buechel, Hikes Point and St. Matthews. "This is a de facto tax."

Only people who live in the old City of Louisville, known as the Urban Services District and unincorporated parts of Jefferson County would pay the fee. Customers who live in Louisville's suburban cities wouldn't see an increase because those municipalities have their own agreements with LG&E.

Greater Louisville Inc. representatives on Thursday sent emails to its business members urging them to contact Metro Council members and oppose the fee.

"In essence, this is a new $5 million per year tax on Louisville residents and businesses, making worse an already burdensome tax environment," the business group wrote in the letter, which it provided to WAVE 3 News.

A 3 percent fee would raise about $5.4 million a year, Fischer's office has said. The net result would be $4.8 million after eliminating the current, smaller agreement.

Some members of the committee complained that the fee would come on top of increased sewer taxes and the potential for property tax increases. Metro Sewer District said at the same meeting that it would raise sewer taxes by an average of $29 a year starting in August.